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Germany – Party wants to tackle wage dumping for contract workers

19 February 2013

The German opposition party SPD is planning to tackle the “abuse of contract work” with the party criticising that the “qualitative and quantitative” use of this type of labour has grown in size in the labour market.

The party said that employers use contract work to duck pay. In draft legislation, the social-democratic party said it wanted to put an end to “social dumping”, which is allegedly promoted by contract work. Proposals include giving work councils more codetermination rights when companies plan to hire workers on a contract basis.

The party said that employers have made increased use of contract work to avoid paying higher wages, especially in light of the recent pay increases in the temporary staffing industry. It named some of the country’s biggest employers using contract workers to pay lower wages. This includes automakers Porsche and BMW and various supermarket chains which have been criticised over this labour practice.

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